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Attorney-General Mark Dreyfus has labeled the Coalition-era Centrelink scheme as “deliberate” and “calculated”, agreeing or concurring in principle with all the 56 royal commission’s recommendations.
The royal commission into Robodebt handed down its 900-page report on Friday (7 July) labeling it as “cruel and unlawful”.
It emphasised that the scheme was unjust, creating a sense of criminality among many individuals.
The report highlighted how people experienced trauma merely on the possibility of owing money, deeming it a costly failure in both human and economic terms within public administration.
Running for four and a half years, from July 2015 to November 2019, the Robodebt scheme generated $1.73 billion in unlawful debts against over 400,000 individuals.
The commission’s recommendations aimed to enhance Centrelink, the social security system, the public service and government operations.
These suggestions covered the treatment of legal advice within government, allocating more resources and authority to the Commonwealth ombudsman.
Minister for the Public Service Katy Gallagher expressed her view that Robodebt represented a shameful episode in Australian public administration.
“Since coming to government, we have begun the task of rebuilding and investing in the APS and we will continue to deliver on our commitments to reduce outsourcing and have more capability in-house,” Ms Gallagher said.
“We recognise that the public service is an enduring institution central to the strength and success of our proud democracy. A stronger public service delivers better government and better outcomes for all Australians.”
To implement the commissioner’s recommendations, the government is allocating $22.1 million in fresh funding over four years from 2023–24, with an additional annual $4.8 million in perpetuity.
This followed earlier announcements of $228 million in funding for Services Australia to enhance frontline services and $1 billion in added funding for Services Australia since October 2022.
Additionally, the Albanese government has made permanent increases to the base rates of working age and student payments, broadened eligibility for Parenting Payment (single) and delivered the most substantial rise in Commonwealth Rent Assistance in over three decades.
The government’s response to the Robodebt royal commission also involves extra funding to empower the Commonwealth Ombudsman in overseeing government agencies, aligned with the recommendations.
Furthermore, new funding has been allocated to reinstate the Administrative Review Council, fostering improved decision making across the government.
Additional funding will be directed to the Attorney-General’s Department for enhancing the Office of Legal Services Coordination and the Office of Constitutional Law, aiming to refine the identification of legal risks and provision of legal advice to the cabinet.
Minister for the National Disability Insurance Scheme and Minister for Government Services Bill Shorten MP has expressed sincere condolences and acknowledged the profound losses experienced within the scheme, extending sympathies to the affected families.
“To those who took their own lives because of Robodebt and their families we pay our respects. The horrible pain inflicted upon you should never have happened,” said Mr Shorten.
“Never again should people receiving government supports be demonised as second-class citizens.”
He further stressed it is unacceptable to stigmatise individuals receiving government support unfairly, emphasising the need for the opposition to apologise.
[Related: Royal commission finds robodebt scheme ‘cruel and crude’]
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